Lloyds Metals & Energy Ltd is considering raising the capacity of its proposed steel plant in Maharashtra to as much as 8 million tonnes per annum (mtpa), as surging iron ore production bolsters its downstream ambitions. According to reports from Mint, the company has received environmental clearance for a 4.5 mtpa steel plant at Konsari in Gadchiroli, up from the 3 mtpa facility originally planned, and is evaluating whether to take the capacity as high as 8 mtpa. Board approval is pending for the final decision, which will determine the project's investment requirement and whether any additional environmental approvals are needed.
The potential scale-up reflects Lloyds' growing confidence in its iron ore business and its ability to use captive ore to move further downstream into steelmaking. As reported by Mint, the company expects iron ore production to reach about 26 million tonnes in fiscal year 2027 (FY27) from 21.96 million tonnes in FY26, giving it a much larger raw-material base to support an integrated steel business. By FY28, the company expects about 2.4 million tonnes of iron ore and pellet production to be consumed internally, including an additional 1.4 million tonnes by the steel plant.
The proposed expansion comes even as Lloyds is yet to commission its first steelmaking plant. According to Mint, the company is executing a 1.2 mtpa electric-arc-furnace wire-rod unit at Ghugus in Maharashtra's Chandrapur district, which it expects to commission by March 2027. A Lloyds Metals spokesperson confirmed that the management is currently evaluating the optimal product mix and suitable scale for the steel capacity at Konsari, with the final capacity potentially higher to establish the most viable and feasible greenfield primary steelmaking project.
The Ghugus and Konsari steel projects are expected to involve investments of ₹20,000-25,000 crore over the next five years, as reported by Mint. The company expects to spend ₹11,000-11,500 crore over the next two years on ongoing projects, with capital expenditure expected to rise further as its steel projects come on stream. Lloyds reported a threefold increase in consolidated revenue from operations to ₹7,354.4 crore in Q1FY27, from a year earlier, while net profit rose to ₹1,726.59 crore in the June quarter, from ₹651.86 crore a year earlier.
Shares of Lloyds Metals & Energy have gained 36.56% year-to-date, outperforming the benchmark Nifty 50, which has fallen 7.42% over the same period, according to Mint. The company's expanding raw-material base is already visible in its operating numbers, with Lloyds producing 6.05 million tonnes of iron ore in the June quarter, up 53% from a year earlier, while sales rose 58% to 5.46 million tonnes. Pellet production stood at 1.69 million tonnes after its second pellet plant reached full capacity utilisation within four months of commissioning.
